Autodesk Inc (ADSK)
Solvency ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.23 | 0.24 | 0.26 | 0.22 | 0.26 |
| Debt-to-capital ratio | 0.55 | 0.67 | 0.73 | 0.63 | 1.09 |
| Debt-to-equity ratio | 1.23 | 1.99 | 2.68 | 1.70 | — |
| Financial leverage ratio | 5.34 | 8.24 | 10.14 | 7.54 | — |
Autodesk Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a decreasing trend from 0.26 in 2022 to 0.23 in 2024, indicating that the company has been able to reduce its reliance on debt for financing its assets.
The debt-to-capital ratio has also improved over the years, dropping from 1.09 in 2020 to 0.55 in 2024, indicating a more favorable capital structure with a lower proportion of debt compared to the total capital employed.
The debt-to-equity ratio, although fluctuating, generally shows a decreasing trend from 2.68 in 2022 to 1.23 in 2024. This indicates that the company is progressively relying less on debt financing and has a healthier balance between debt and equity in its capital structure.
The financial leverage ratio has also improved from 10.14 in 2022 to 5.34 in 2024, reflecting a reduction in financial risk and leverage within the company's operations.
Overall, the trend in Autodesk Inc's solvency ratios suggests an improving financial health and a more sustainable approach to managing its long-term financial obligations by reducing its reliance on debt financing.
Coverage ratios
| Jan 31, 2024 | Jan 31, 2023 | Jan 31, 2022 | Jan 31, 2021 | Jan 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 141.00 | 23.00 | 9.51 | 7.63 | 6.35 |
Autodesk Inc's interest coverage ratio has shown a significant improvement over the past five years, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio increased from 6.35 in January 2020 to 141.00 in January 2024, demonstrating a substantial enhancement in the company's ability to cover interest expenses with its operating income.
The consistent increase in the interest coverage ratio reflects Autodesk Inc's improved financial performance and profitability over the years, providing a reassuring sign to investors and creditors about the company's financial health and stability. This upward trend suggests that the company has been generating sufficient operating income to comfortably cover its interest expenses, reducing the risk of default.
The significant improvement in the interest coverage ratio over the five-year period indicates that Autodesk Inc has effectively managed its capital structure and financial obligations, positioning the company well in terms of financial sustainability and solvency. Investors and stakeholders may view this positive trend as a sign of the company's strength and ability to withstand financial challenges.